How to Select a Freight Broker

Hallelujah, you just landed a big client that will double your manufacturing output. But your current freight provider can’t handle the extra loads. What do you do? Several freight brokers have called you in the past but you don’t know anything about them or how they operate.

Why consider a freight broker in the first place? They don’t own their own trucks so what are the benefits?

Because covering loads for their clients and managing shipments from pick-up to delivery are a freight brokers’ number one full time job. That’s all they do. So they are experts: experts on routing, experts on lane rates, experts on areas and regions of the country, experts on the intricacies of shipping different types of commodities and on different types of equipment. Unlike an actual trucking company who only has access to their own trucks, freight brokers have access to thousands of carriers and trucks. It is a freight broker’s job to know where there are available trucks. This is extremely helpful in getting short notice spot freight picked up on time. Freight brokerages typically carry additional cargo insurance that will help protect your loads should there be a claim.

Now, how to do you select the right one that fits your business?

Conduct the same type of due diligence you would with any other vendor. No matter how great a sales job you did, if you don’t deliver the product you have an unhappy customer. You can’t trust the load with just anybody. Unfortunately there are some unsavory and unethical freight brokers out there, and even worse…there are scam artists that will take your load, send you a bill, find a truck and run off with the money never paying the hardworking driver that delivered the freight. Your left holding the bag.

Here’s how to conduct that due diligence to ensure you select the best freight broker.

1. Check any freight broker’s authority documents and bond and make sure that the names and address on all documents match. If they don’t match it may be a scam.

2. Ask them about, and check their experience and reputation. How long have they been in business? Are they truly that expert you need or are they new to the game? Do they have any specializations? Are they members of industry associations, or have they won any awards for service?

3. Ask them about their size, as it does make a difference. The bigger they are the more they’ve already proven themselves to be trustworthy AND they have access to many more available trucks.

4. Ask them about their financial stability. Ask them what their credit worthiness ratings are and make sure to ask them how they pay the carriers they work with. Do they pay carriers fast or do they wait for you to pay your bill first? If they aren’t paying the trucks fast it’s a red flag.

5. Ask and investigate their attitude towards ethics and integrity. Will they always do the right thing? How do they treat the hard working drivers?

6. Ask them about their operations. Do they offer a single point of contact or are you left with dealing with “whoever” answers the phone? Do they have operations open 24 hours a day including weekends and holidays? Lastly do they have robust technology to aid in the tracking and managing of the freight as it’s on the road?

7. Most importantly ask your freight broker how they communicate. Are you left wondering what’s going on with your freight or are they keeping you updated every step of the way? Lack of communication and information indicates a freight broker really isn’t managing your shipment.

Moving forward,

Jeff Roach
www.brooketraining.com
www.justintimefreight.com
www.pajamalearning.biz

What Age is Old?

This story was sent to me by a former student of Brooke Training who has become a great friend as well. My desire is to not only teach the skills needed to succeed in the transportation industry but also inspire others to live everyday as a gift, just like Rose:

My Name is Rose

The first day of school our professor introduced himself and challenged us to get to know someone we didn't already know. I stood up to look around when a gentle hand touched my shoulder.

I turned around to find a wrinkled, little old lady beaming up at me with a smile that lit up her entire being .

She said, 'Hi handsome My name is Rose. I'm eighty-seven years old. Can I give you a hug?'

I laughed and enthusiastically responded, 'Of course you may!' and she gave me a giant squeeze.

'Why are you in college at such a young, innocent age?' I asked.

She jokingly replied, 'I'm here to meet a rich husband, get married, and have a couple of kids...'

'No seriously,' I asked. I was curious what may have motivated her to be taking on this challenge at her age..

'I always dreamed of having a college education and now I'm getting one!' she told me.

After class we walked to the student union building and shared a chocolate milkshake.

We became instant friends. Every day for the next three months we would leave class together and talk nonstop. I was always mesmerized listening to this 'time machine' as she shared her wisdom and experience with me.

Over the course of the year, Rose became a campus icon and she easily made friends wherever she went. She loved to dress up and she reveled in the attention bestowed upon her from the other students. She was living it up

At the end of the semester we invited Rose to speak at our football banquet. I'll never forget what she taught us. She was introduced and stepped up to the podium.. As she began to deliver her prepared speech, she dropped her three by five cards on the floor..
Frustrated and a little embarrassed she leaned into the microphone and simply said, 'I'm sorry I'm so jittery. I gave up beer for Lent and this whiskey is killing me! I'll never get my speech back in order so let me just tell you what I know.'

As we laughed she cleared her throat and began, ' We do not stop playing because we are old; we grow old because we stop playing.

There are only four secrets to staying young, being happy, and achieving success. You have to laugh and find humor every day. You've got to have a dream. When you lose your dreams, you die.

We have so many people walking around who are dead and don't even know it!

There is a huge difference between growing older and growing up.

If you are nineteen years old and lie in bed for one full year and don't do one productive thing, you will turn twenty years old.. If I am eighty-seven years old and stay in bed for a year and never do anything I will turn eighty-eight.

Anybody! Can grow older. That doesn't take any talent or ability. The idea is to grow up by always finding opportunity in change. Have no regrets.

The elderly usually don't have regrets for what we did, but rather for things we did not do. The only people who fear death are those with regrets.'

She concluded her speech by courageously singing 'The Rose..'

She challenged each of us to study the lyrics and live them out in our daily lives. At the year's end Rose finished the college degree she had begun all those years ago.

One week after graduation Rose died peacefully in her sleep.

Over two thousand college students attended her funeral in tribute to the wonderful woman who taught by example that it's never too late to be all you can possibly be.



REMEMBER, GROWING OLDER IS MANDATORY. GROWING UP IS OPTIONAL. We make a Living by what we get. We make a Life by what we give.

God promises a safe landing, not a calm passage. If God brings you to it, He will bring you through it.

Moving forward,
Jeff Roach
www.brooketraining.com
www.transportationtraining.com
www.pajamalearning.biz

The Grads Tell all

I just received a bunch of comments from the latest group of soon to be freight brokers who took our basic course. I appreciate all our instructors who month after month do an excellent job imparting lots of invaluable knowledge to our students. I have the privledge of talking with many who call in to enroll in our course. I am confidant when I talk with them that they will get much out of the course because of all the graduates comments like these.

Testimonials 4/2010

Great learning environment. Very in depth on load boards and their functions. I feel very comfortable with all the sales techniques. This class will help me and everyone else who takes the class succeed in the future. E. Villarreal

Learned a lot about the freight broker business in a short few days. N. Tran

Great training source for would be broker agents with no previous experience. – V. Marquez

Enjoyed the class that teaches you so much. Really got down to the nuts and bolts of how this business operates. Jeff was really able to answer all our questions. He went out of his way to teach us as much as possible. S. Magallones

Plenty of useful information for anyone to succeed in this industry.
Class was very informative and easily comprehensible
Great job Jeff.
Thank you for all the info. – Tyler P.

I learned a lot of detail about freight being moved and what a freight broker does. I didn’t think I would learn that much. I believe this training will help me succeed in this field. Natalie P.-V

Join us for a live course or online.

Moving forward

Jeff Roach
www.brooketraining.com
www.transportationtraining.com
www.pajamalearning.biz

Hard Working Freight Broker

In an up market, making money is easy. In a down time you have to work harder. You have to manage - not get managed. A broker is like a quarterback - He or She is in charge while doing business. You better know the play-book and how it works. That's what we teach at Brooke Transportation Training.

Transportation management is critical to the shipper. As a broker, you must manage risk and manage cost while providing quality service and communication. Those are the elements that make you invaluable to your customer.

The freight broker is also critical to the carrier/ owner operator because you can find them residual freight that pays well enough for them to make a profit.

The Guy at the top of the billion dollar companies cares about his people, planning and the numbers on his profit and loss as well as balance sheet. Help him any way you can by keeping his people happy and working the numbers for profitability.

The goal is to get everyone educated, build solid relationships based on trust and communication. Bring character back into this industry, not characters.

Come and Get Some Education then educate your carriers and shippers. This is a very serious situation. This industry is thirsty for respect. We must stop the bleeding and get to work making things equitable to the shipper, the carrier/owner operator and to the freight brokers/agents. Let's lead the way by how we do business.

Plus, to all the new people in this industry - integrity is an advantage. Just learn and do business the right way. You will find great carriers and great shippers.

Just keep on working. Faith enables and Fear disables.

I have faith that everything will be fine.

Moving forward,

Jeff Roach
www.brooketraining.com
www.transportationtraining.com
www.pajamalearning.biz

Tough Times for Brokers

I read an article by Rip Watson about the high bankruptcy rate among freight brokers in Transport Topics. I try to focus on positives not negatives but the reality is that the economy has been tough on most entrepreneurs. I truly believe greatness can arise out of tough times. A while back I blogged about how many incredibly successful businesses were birthed during the Great Depression. What we’ve been going through is nothing compared to then.

I imagine most freight brokers would have had a fighting chance had they gone through my course. I’m not being boastful I’m just looking at successful brokers. When my instructors aren’t instructors they are brokers and they are doing well. Very well. This is why training is so important. This is why the military trains every day for a mission.

The more you learn the more you earn. I have consulted with brokers who are putting out unreal numbers and I can honestly say they have happy customers and happy carriers. I was amazed at the gross margin numbers every day.

I believe in any market place - The guy who knows the most, who is the most informed and the most connected to the industry will be the last business standing. Standing pretty tall I may add.

Learn to negotiate. The good news is we can learn anything. If you don't like where you are in life, change it. Change starts in your brain. What you put in your brain everyday affects your actions. After you fill your brain with great stuff …Take action.

My online course is in 2300 schools and universities and my freight broker / agent course is in 4 states and is more important to you now than ever. Our training teaches a proven process towards success for a broker. Our course is filled with motivation. And in our course you’ll meet others that will help spur you on.

More on Monday.

Moving forward,

Jeff Roach
www.brooketraining.com
www.transportationtraining.com
www.pajamalearning.biz

Feeling Maudy?

To the Christian today is Maudy Thursday, a remembrance of Jesus last Passover supper with his disciples. He gave new meaning to Passover supper. Jesus was called the lamb of God whose blood was sacrificed so all could live. Christians celebrate the Lord’s supper with bread that represents Christ’s body and wine or grape juice representing His blood. The next day Jesus would be crucified on Good Friday. The greatest good ever done in all of history was done that Friday. He was the final sacrificial lamb

"Maundy" comes from the Latin word for "command." In the context of Maundy Thursday, it refers to the commandment Jesus gave us to love one another. Greater love has no man than this, that he lay down his life for his brother.

Our society is very fast pace, there’s always something to do. Slow down and reflect on your beliefs and the significance of today.

One of the great things about being my own boss is I can kick it into slow gear for a day of celebration and reflection if I choose.

Moving forward,

Jeff Roach
www.brooketraining.com
www.transportationtraining.com
www.pajamalearning.biz

Tapping into Grant Money

In an effort to get people back to work a lot of new government programs have been developed. There is grant money available for career training. Many of our students are able to take advantage of such programs to pay for their freight broker training. We do not get the grants for our students but we have been paid with grant money. So if you are thinking about training to become a freight broker or another career option available through pajamalearning.biz do a little research on the availability of grant money for education. Do an online search. Many churches now have jobs ministries like H.O.P. E. (helping others procure employment) that help individuals find the money for training as well as give help with interviewing skills, resume writing and more.

As you work to prepare for work consider a combination of online as well as live learning. In our school students often take our live courses for two weeks then take the online course for 6 months. The combo gives you a very solid education in the transportation industry and freight brokering.
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Being a freight broker is similar to being in real estate or insurance. You are your own boss. You can choose to go it alone or you can work as an agent for an established freight broker. Just like an insurance agent might be independent or work under State Farm. Owning a brokerage and bringing on agents makes a lot of sense and is how brokers are seeing explosive growth. These agents create AR. Your fixed cost as a broker are minimal. And the pay is 100% commission.

Entrepreneurs do great as freight brokers agent. The costs to start up are a lot less than a franchise but as an agent you have the support of a freight broker.

Give us a call if you have any questions.

Moving forward,

Jeff Roach
www.brooketraining.com
www.transportationtraining.com
www.pajamalearning.biz